MUH: Upside Breakout

MUH broke above its downtrend line, RR at RM1.35 this morning. This bullish breakout could be the start of the next upleg for the stock.


Chart: MUH's daily chart as at Jun 24, 2015_11.00am (Source: ShareInvestor)
 
MUH is a building material supplier that's involved in the manufacturing of fire resistance bricks, hollow blocks, paving blocks & box culverts (here). Its sudden increase in revenue & profits is due to its property development subsidiary, TF Land Sdn Bhd (here). Because of the property development division, MUH's EPS soared to 41 sen for FY2014. For 1Q2015, its EPS was 8.2 sen or annualized EPS of 32.8 sen for FY2015. At RM1.44 (as at 4.00pm), MUH is trading at a PER of 4.4 times.


Diagram: MUH's last 10 quarterly P&L & CF (Source: ShareInvestor)

Based on attractive valuation & bullish technical outlook, MUH could be a trading BUY.
 
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, MUH.